Additionally, DBRS Morningstar discontinued the Recovery Rating on the Senior Notes. The rating actions remove the ratings from Under Review with Negative Implications, where they were placed on
DBRS Morningstar considers the proposed terms of the exchange under the Transaction as disadvantageous to the Senior Note holders. As a result, based on the assumption of approval, the exchange for New Senior Notes is considered a distressed exchange and the ratings of the Senior Notes have been downgraded to
The proposed Transaction will be implemented through a corporate Plan of Arrangement under the Canada Business Corporations Act with the shareholder's and Senior Note holder's meeting scheduled for
DBRS Morningstar notes that the Transaction, if successfully completed, will improve the Company's credit profile with improved liquidity and more financial flexibility. DBRS Morningstar will likely reassess the Issuer Rating at close of the Transaction based on the Company's revised capital structure and business plan.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies are Rating Companies in the Oil and Gas and
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
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Ratings
Date Issued Debt Rated Action Rating Trend Recovery Rating Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
27-Oct-20 Issuer Rating Downgraded SD -- CA
27-Oct-20 Senior Secured First Lien Notes Downgraded D -- Discontinued CA
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